Falcon Energy Materials Advances $86 Million Graphite Processing Facility in Morocco

Falcon Energy Materials has confirmed robust economics for its planned natural graphite processing facility in Morocco, with an initial capital investment of $86 million and first production targeted for the second half of 2027. The technical-economic study prepared by Dorfner Anzaplan UK Limited demonstrates the company's path to becoming a low-cost producer of coated, spheroidized and purified graphite at industrial scale, with target annual production of 26,000 tonnes of CSPG and 19,000 tonnes of fines.

The announcement comes as Western manufacturers seek reliable, compliant sources of battery anode materials outside of China. Falcon's strategic partnership with a leading CSPG producer with extensive experience building and operating anode plants in China provides crucial technological expertise and established procurement chains. This partnership enables the company to leverage proven designs and recent process efficiencies to deliver high-quality anode material at competitive costs to rapidly growing European and North American markets.

The anode plant design incorporates three key processing stages. The spheroidization plant uses advanced processes to shape graphite flakes into spheres, increasing surface area and energy density to produce spherical graphite. The purification plant employs hydrofluoric acid alongside hydrochloric and nitric acids to remove impurities, producing material with purity exceeding 99.95%. The final coating plant applies an amorphous carbon coating using pitch tar to enhance energy density and increase battery safety and longevity.

Located in Jorf Lasfar, Morocco, the facility benefits from strategic access to port infrastructure and energy resources, along with free trade agreements with both the United States and European Union. The company plans to construct a single "Super Building" to optimize plant footprint and operational efficiencies. The estimated operating costs of $3,168 per tonne of CSPG position Falcon competitively in the market, with current consensus long-term CSPG pricing at $8,300 per tonne for the proposed product mix.

Environmental considerations are integrated throughout the plant design, with advanced gas and water treatment systems meeting Moroccan environmental standards. The gas scrubber neutralizes off-gasses from purification and coating processes using hydrated lime, while the water treatment system handles 432,000 tonnes annually of effluents before discharge to local sewage networks.

The company has commenced the environmental impact assessment, expected for completion in the first half of 2026, which is required for construction permits. Parallel work includes detailed engineering of the Super Building, anode plant flow sheet and ancillary infrastructure. Construction of a pilot plant remains on track for completion in the fourth quarter of 2025, with first CSPG samples for customer testing expected in the same quarter. These samples are instrumental in securing long-term offtake agreements, with testing already commenced with several potential customers. For additional information about the company's progress and technical specifications, interested parties can visit Falcon's website. The project represents a significant step in addressing critical supply chain gaps for battery materials in Western markets, supporting the transition to electric vehicles and energy storage solutions.